L0RDZ (75.89)

Low taxes ~ forever as a holding period...

August 16, 2011 – Comments (1)

http://news.yahoo.com/real-reason-warren-buffetts-taxes-low-171220991.html

So  Big boy B likes to constantly  brag  about his  tax  situation:

BLA B:LA  BA BA BA BA BA  sheep sheep  and more BAAAAAAAAAAAAAA innnnnnnnnnnng

I don't pay enough in taxes....  shessssssssssssssssssssshhhhhhhhhh  makes me want to puke and drink whenever I think of some filthy rich old man  grinning  wanting to jerk people around...

Well of course if you're powerful enough to maintain  this !!!!!!!!!!!!!!!!!!!!!!!!!!

Still Mr. Buffet is not sharing the real reason that he doesn't pay much in the way of income tax relative to his great fortune.  The secret is hidden in plain sight.  Mr. Worstall alludes to it when he mentions that Berkshire Hathaway does not in fact pay dividends.  Mr. Buffet's secret which you can find blasted all over the Internet is one of his famous quotations:

Our favorite holding period is forever

You only pay income taxes at any rate on realized appreciation.  An investment with a holding period of forever incurs a capital gains tax of 0%, while all along the holder can be getting wealthy from appreciation.  That's the real reason Mr. Buffet does not pay a lot of income taxes.